Ideally, modernization of office spaces can be implemented only with equity. For many entrepreneurs, however, this is not or only partially possible. It is often not possible without outside capital.
Before making any loan inquiries, it is imperative to carefully determine the expected expenses. A few possible measures are listed below, which serve as a guide and can facilitate the preparation of a cost breakdown that is as detailed as possible:
- Replacement of the heating system
- Facade and interior insulation
- Renewal of sanitary facilities
- Installation of air conditioning
- Acoustic room design
- Painting and design (You may want to look at Portos Painting and Maintenance)
- Laying of modern floor coverings with impact sound insulation
- Modernization of lighting systems
- Electrical installations
- Installation of windows with thermal insulation glazing
In addition to the material costs, the personnel costs for craftsmen should by no means be underestimated. In combination, the sums are huge. In an office with around 130 square meters, the costs for the internal insulation of external walls alone can cost a few thousand. The exact price depends on the contractor and the insulation material used. The modernization of a heating system quickly reaches the four/five digit range. The same applies to new windows. Here, too, the costs add up rapidly.
Not to be forgotten: If an office has to be closed during work and the day-to-day work cannot be continued as usual, there may be a drop in sales. Depending on the scope of modernization or renovation, two to four weeks can be expected.
For larger projects, for example if extensions are made or the architecture of a building is significantly changed in another way, additional expenses for approval procedures may occur. Including the creation of escape route plans or the like that must be included in the calculation.
Set A Budget And Request Estimates
In order to ensure that the costs do not skyrocket and that debt follows, it is essential to set an appropriate budget based on the individual financial situation. Renovating, and especially modernizing, is desirable in terms of maintaining the value of offices. But this should not lead to financial difficulties. In case of doubt, the tax advisor can help and advise independently.
Once the budget has been clarified, the scope of the projects can be thought through and the materials selected. If the financial situation does not permit complete modernization, measures are prioritized, for example, which have the greatest impact in terms of energy. For example, replacing heating and windows would be more efficient than replacing floors.
To calculate a realistic sum are estimates required. Although most of these documents contain only non-binding information, they are an important guide. In the case of non-binding cost estimates, which become the basis of the contract through commissioning, clients often have to expect that the final price will be exceeded.
In individual cases, it is conceivable that the originally quoted price may be exceeded by up to 25 percent. So, is your business space in need of a refit still?
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